What is a product's grade, as a characteristic of quality? Give a service industry example.
What will be an ideal response?
While student examples may vary, here is an example answer.
A product's grade is the extent of its capability in performing its intended purpose, viewed in relation to other products with the same functional use.
An example in the service industry is airline travel. Airplane seats may be coach class or first class; the difference lies in seat size, comfort, and service. Either class will take you from Los Angeles to Chicago, but not with the same degree of comfort.
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During 2018, its first year of operations, a company recorded depreciation expense of $50,000 for book purposes. For tax purposes during 2018, $100,000 of depreciation expense was deducted. The temporary difference created during 2018 will reverse equally during 2019 and 2020. Book income from operations during the first year was $570,000. The income tax rate is 40%. The income tax expense to be reported in the income statement for the first year of operations is:
A. $248,000. B. $228,000. C. $188,000. D. $208,000.
Which of the following is one of the three steps in the general approach for estimating market potential?
A) Determine the improvements needed in the existing product. B) Determine the marketing budget allocated to the product category being evaluated. C) Estimate the potential purchasing or usage rates. D) Determine the profitability of the product category being evaluated.
Which of the following best describes the core principal of accountability in the SDLC?
A. Ensuring that identification of the people responsible for implementing the IT plan is explicitly clear. B. Ensuring the presence of a verifiable audit trail in the new system. C. Ensuring that account balances faithfully represent the underlying transactions in the new system. D. Ensuring that the chart of accounts in the new system conforms to GAAP.
Manufacturers/service sponsors can exert channel control through _____
a. brand loyalty b. store loyalty c. private branding d. fair practice legislation